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HomeMy WebLinkAbout07-09-18 Utilities . TH 8��d U d \QE.0 i�E a X X 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK UTILITIES JULY 9, 2018 4:21 P.M. Committee Members Present: Jake Teshka, Sharon L. McBride, Regina Williams-Preston Committee Members Absent: Oliver Davis Other Council Present: Tim Scott, Jo M. Broden, John Voorde, Karen White, Gavin Ferlic Other Council Absent: None Others Present: Bianca Tirado, Graham Sparks, Bob Palmer, Casey Colvin, Gabriel Murei, David Boling, Elivet Navarro Presenters: Kelly Beduhn Agenda: Update: Repower Indiana- Kelly Beduhn Committee Chair Jake Teshka called to order the Utilities Committee meeting at 4:21 p.m. He introduced members of the Committee and proceeded to give the floor to the presenters. Update: Repower Indiana- Kelly Beduhn Kelly Beduhn, 19553 Darden Road, stated, I'm a volunteer leader with Indivisible Indiana District 2 and we are a part of a coalition of organizations in the Repower Indiana Movement. That, the Sierra Club,Hoosier Interfaith Power&Light and others are a part of it. Other cities have different organizations that are environmentally-minded. The goal of Repower Indiana is to try and get our State to move away from fossil fuels and move toward renewable energy. We are really trying to do that by influencing the utility company directly to make that right choice. So right now we are trying to influence Indiana Michigan Power (I&M) and their twenty (20) year Intergraded Resource Plan(IRP). So on slide two(referencing a handout which is available in the City Clerk's Office) it talks about what we have learned so far for Indiana Michigan Power. The Repower Indiana Movement and volunteers like myself having been participating in their stakeholder workshops that I&M has been holding all year. They are holding four workshops. They have had two (2) and I have been to both of them and we have been able to participate and learn about the process. I was really excited when they shared with us their intention to phase out their coal combustion plants in southern Indiana. They have two (2) coal combustion units down there, as you probably know. Unit One (1) is a leased unit and it expires in 2022 and they were very clear with us, multiple times, they are just going to walk away in 2022 when the lease expires. So that leaves the Rockport One (1) Unit and the deadline on that they are facing is 2028. They would have to do a very expensive pollution control install to meet the case standards. By that date in INTEGRITY1 SERVICES ACCESSIBILITY JENNIFER M.COFFMAN BIANCA L.T¢u.Do JOSEPH R MOLNAR CHIEF DEPUTY/DIRwTOR OF OPERATIONS DEr=/DIREcroR OF Policy ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Blvd.I South Bend,Indiana 466011 p 574.235.92211 f 574.235.9173 1 www.southbendin.gov ®CITY OF SOUTH BEND I OFFICE OF THE CLERK 2028 they would have to install the Flue Gas Desulfurization. That is millions or billions of dollars and we expect they will choose to not do that and to stop burning coal all together. Ms. Beduhn continued, So those dates are five (5) and ten (10) years out and well within this twenty (20) year plan they are looking at. So there is this opportunity to see what they replace all that Rockport power with. We are hoping they choose renewable and efficient energy. On page three (3) of the handout, that is what we just went over. The next stakeholder workshop is here in South Bend and it is on August 1St,2018. That is the time when they are going to present different models and different scenarios they will be choosing from. There is all this complicated modeling that goes on and so they will lay out all the choices of models and then they have to make that final decision of what the want their twenty 20 year energy plan to look like and submit it to the Y Y ( ) Y gYp Indiana Regulatory Commission. On August 1 St we expect them to show us a plan that does involve a lot more renewable energy. However, we are concerned that maybe their focus on energy efficiency may fall short of what we would like to see. We do also expect them to show a plan that would include building a new gas plant to rely on natural gas to replace some of that coal power. Our goal is that they not go the route of natural gas and that they commit to replacing all of the Rockford Coal power with renewable power through solar, wind and energy efficiency projects. Ms. Beduhn went on, If they want to use gas,we might choose that. It is not necessary to invest in expensive plans that will burden the community. They ask us to pay for these projects and it will probably be obsolete. Really, fossil fuels are not the future. Renewable is. We are encouraged to think that this is an opportunity to model that renewable plan and then choose it. The rest of these slides really talk about some of the opportunities as a community that would be available if we were to get I&M on board with investing in these renewable concepts. On slide four (4) it breaks down the cost of solar and wind as well as the coal and gas. Right now, to produce one (1) megawatt hour of power,the current coal situation is costing us thirty nine dollars ($39). So when that coal burnin g g oes away, they could replace it with gas and it would actually cost them forty two dollars ($42) per megawatt hour. The health of the environment should be really important to all the decision makers. Wind is the cheapest way to go and it is twenty nine dollars ($29) per megawatt hour. Solar would be thirty seven dollars ($37) per megawatt hour according to the sources indicated on the bottom. Ms. Beduhn continued, We do expect to see a lot of investment in solar energy and we are hoping to see the City of South Bend really start thinking about how that would look for our City with our opportunities here. Slide five (5) shows some of the solar installations that are popular in this part of the country. I know you are aware of projects like the Near Northwest Neighborhood and Century Center, and even our new Fire House. Those are projects we are encouraging. Slide six (6) highlights a project called Brownfield to Brightfields. It was a research project that Ball State did. They gave a lovely presentation at the I&M stakeholder meeting this past February. What I like about it was it really focused on studying those Brownfields in Delaware County and how those can be converted into utility-scale solar projects. They found several potential sites in their county which is very similar to the situation we have up here. There are a lot of old spaces that need to be utilized in an effective and efficient way. They calculated in their study that they could generate sixteen (16) megawatts of power from just four (4) sites in their one (1) county. That is in excess of the current megawatts that I&M does at all. So their potential there in just those few sites is a vast improvement from where they are at now. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455County-City Building,227W.Jefferson BvldI South Bend,Indiana 466011p574.235.9221If574.235.9173 TTD574.235.55671www.southbendin.gov 2 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK Ms. Beduhn went on, If you think about what South Bend can do, going to slide seven(7), we can talk about that. I know you guys are aware of the great progress in Indianapolis because I recently reviewed your 2016 resolution calling for a transition to renewable power and you highlighted Indianapolis as a leader in solar. Their projects at their airport, their motor speedway and their IUPUI Campus are saving them a lot of money as well as the health of their environment. That is because their local utility chose to do that by making a commitment to that. We are looking to get I&M to do that same thing. Also in your packet, you will find related to slide eight (8) are some articles about Michigan City School solar. They are saving a projected $23 million in money to buy energy for their school system by having installed this project at one (1) of their middle schools. I also like that because it is a place where kids can learn about energy science. And it didn't cost the City anything and you know you like that. Councilmember John Voorde interjected, Is there a time and place for this public meeting on August 1St? Ms.Beduhn replied, Yes,it is at the NIPSCO Service Center located at 2929 Lathrop Street, South Bend. I believe the stakeholder workshop will begin at 10:00 a.m. but you have to register with I&M in advance. I would be happy to send you those links and we would love to have any or all of you there. Also, the Repower Indiana movement is hoping to have a press conference that morning just to head off the workshops. That is how we want to officially present these pledges. We hope to be persuasive to I&M rather than legislating them to do something. We want them to decide to do it because they want to do it. Committee Chair Teshka stated, I want to be mindful of the time so if you have high points to hit, please continue but then I would like time for Council Members to ask questions. Ms. Beduhn replied, I appreciate that because most of these slides are just ideas. However, I did want to go to the energy efficiency slide, so, page eleven (11). I learned from this that the most affordable kilowatt of power is the one (1) you don't use. So energy efficiency is really a great way to offset some of this power we will lose with the moving away from Rockport. Instead of burning the power, let's not burn it. It will really help the low-income households in this community.Also,I&M is obligated now,by the courts,to collaborate with the City of South Bend as well as the City of Fort Wayne, on low-income efficiency programs. I'm really excited about participating in that and seeing how we can help I&M and the City of South Bend to come up with a plan to really revitalize our community. There are suggestions on here to look at later but there are things like helping people finance retrofits in their home.That does more than stabilize energy and make the utility bill affordable but it also just helps the whole housing stock in the community. We are just asking you to sign the pledge to show your support as a prominent member of the community to seek and demand renewable energy choices for our community. It really just reinforces the great work done by your 2016 resolution. Committee Chair Teshka opened the floor to Committee and Council Members. Councilmember Tim Scott asked, Does going to renewable energy change the employment numbers for I&M? Ms. Beduhn replied, I don't know what it would do to the employment numbers for I&M but I can tell you that is part of our campaign to make that transition a good fit for the employees as well. EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TTD574.235.5567 1 www.southbendin.gov 3 CITY OF SOUTH BEND I OFFICE OF THE CLERK We absolutely don't want to abandon those coal-working and fossil fuel-working people if that is their skillset. The new skills in renewable are the future for them as well as the community. Councilmember Scott followed up, And what I mean is the jobs within. The other thing is, President Trump decided to try and mandate power companies to use coal. Is there any more information on that and is I&M seriously considering that? Ms. Beduhn replied, Well I have to tell you that I think I&M are making their decisions based on what their business model would ask for and it is hard to say if there will actually be a law that says they have to use coal because coal is expensive and who is going to pay for that? We will, as the taxpayers. Speaking as a taxpayer, I do appreciate that question but I am very encouraged that they are seeing renewable as a good choice. This is the time and the opportunity is ripe. Councilmember Jo M. Broden stated. Thank you for your presentation today. So the August 1St event is both a workshop and a public hearing? Ms. Beduhn replied, As far as it being a public hearing, it is really more reserved. It is the third of a series and so most people participating will have a background knowledge of it but it is a great opportunity to show up and learn. August 1St is when we will see their models they will chose from. Councilmember Broden followed up, So the best way for the public to get up to speed is, how? Ms. Beduhn replied, I&M has information on their website. On a grassroots level, we have been trying to share that through our network for those interested parties. Officially, I&M has their website. Councilmember Broden stated, It would be great, as a follow up to today's presentation, links to that please. I am also wondering, in terms of the energy efficiency piece you put in here, is there a summary that could be provided in terms of where we are at currently on levels and agreements that I&M has already reached? Then, information on the specific goals or targets that you are advocating for or pushing for? Would that be fair to ask for follow up in the next two (2) Council Meetings? I guess I want to understand about the bigger collaboration piece or at least what other significant partners might be participating in this input and feedback process to I&M. Collaboration or official statements from our Office of Sustainability and, or,private sector,would be great. In other words, I would like to get at what Councilmember Scott was touching on and if we could get to specific goals as a community and certainly, as one (1) of the major employers, what our goals and targets are relative to this twenty(20)year plan. Ms.Beduhn replied,I love that because I think it is important to have goals and targets established. That is a place where the official people need to step up and, as grassroots, we have no way of controlling that. Regarding I&M's efficiency, I don't have the figures now, but in the back of the handout there is a summary of the numbers of where they are at today. I&M has their own efficiency program. It is no longer regulated. They are not meeting the goals they would need to meet under the State's guidelines and they don't even set goals. It is disappointing to me. Councilmember Broden followed up, In terms of inventory of Brownfields, again, getting at specific goals and targets and us having more of a partnership between private-public sector and EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 I TTD 574.235.5567 lwww.southbendin.gov 4 ®CITY OF SOUTH BEND I OFFICE OF THE CLERK grassroots groups such as yourself, what is our inventory in St. Joseph County? What exists and what is our potential? What is that number and what are the factors that enabled the students to propose solar? Ms. Beduhn replied, To that question, I know just what I learned from the presentation. As well, I had the question you asked and I found some great information on a project that the City paid for recently and there were documents that were from 2014, 2015 and 2016 about some of our Brownfields' potential. However, I do not know what action has been taken on some of those plots or what the potential still is. I do know that, as far as that particular research project, there is very specific criteria that are all laid out in the links online. It was a very detailed presentation and I was very impressed. I don't claim to be an expert by any means but their criteria had to deal with how close the facility would be to a power generation source and station, the right lines, the right footage and other things. The presentation had nineteen (19) potential sites right off the bat and then they dug deep on their four (4) best sites and that is where they were able to get complete analysis. Committee Chair Teshka stated, Thank you and I've been impressed with your organization. If you could please send out more information about the August 1 Sf meeting. You can send it to me or the Clerk's Office and we will be sure everybody gets it. Secondly, my wife has a degree in Environmental Science and we have two (2) young children and we are all for preserving our planet and parks. I'm not in favor of mandates of any kind, whether it be to use something or to not use something. In as far as this pledge is simply asking I&M they consider replacing and supporting a transition, I'm happy to support you in this. With no further business, Committee Chair Teshka adjourned,the Utilities Committee meeting at 4:48 p.m. R ctfully ub itted ake Teshka, Committee Chair EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION EMPOWERMENT 455 County-City Building 1 227 W.Jefferson Bvld I South Bend,Indiana 466011 p 574.235.9221 If 574.235.9173 TM 574.235.5567 i www.southbendin.gov 5